DNT is up by more than 2.5 per cent in today’s trading session, marking a second consecutive day that the cryptocurrency is gaining in the market. The past 24 hours have also seen DNT trading volume go up by 12 per cent, resulting in transactions worth more than $13.3 million.
The DNT is the native token of the district0x ecosystem. It is an ERC-20 utility token which is mostly used for community governance. At its core, the district0x envisions a platform where users can create and host decentralised marketplaces and communities called “Districts”. Users of the platform have the ability to post listings, filter/search, get reviewed, and carry out transactions in the platform using d0xINFRA, an Ethereum smart contract framework used by developers on the platform.
One of the project’s biggest selling points is that it runs on decentralised autonomous organisations (DAOs). This implies that the platform does not have centralised power. To make decisions, holders of the native currency are given voting power. This increases transparency and can result in confidence in a cryptocurrency. In comparison, some of the district0x blockchain projects are not decentralised. In these projects, developers hold all the power, including keys to token reserves. They can also be able to move funds from reserves and distribute them. For such projects, it becomes easy to pull the rug out from under investors resulting in losses. Therefore, part of the current price growth of the platform has come due to assurances the project runs on DAO; hence their funds are safe.
Despite being one of the best-decentralized platforms, 2022 has not been an excellent year for district0x. Its native token, DNT, has lost over 20 per cent since the year started. The cryptocurrency is also looking very bearish despite gaining in today’s and yesterday’s trading sessions.
Currently trading at $0.099, there is a high likelihood that the current price surge is a trend reversal. This is after DNT hit a long-term support level of $0.083 and failed to break to the downside. Therefore, I expect the prices to continue with the current bullish trend in the coming trading sessions. There is a high likelihood that the current bullish trend will see the token hit the $0.15 price level.
However, if DNT prices retrace back and trade below the $0.092 price level between today and tomorrow’s trading sessions, then my trade analysis will be invalidated. It will also be likely that the prices will resume the bearish trend. It will also mean the current bullish push is a price correction and not a trend reversal.
This post was last modified on May 05, 2022, 08:20 BST 08:20